Most of Friday's and Monday's declines were reversed yesterday and this morning. Since I didn't sell last Thursday, and want to get out of my "buy high, sell low" strategy, I think I'll stick with the "ride it out" strategy for a while.

Futures for the Dow show -750 and the Nasdaq -220.

Selling is pretty agressive for merely a 10% correction, last 10 mins today it dove by almost 300 points.

Anybody notice the "takedown" of bitcoin that's been happening along with this?

Well they just went from -750 to +110 with nothing in between, kinda strange.

This is not going to stop, bond yields are up and if they pass this budget tonight it will raise the debt ceiling which will further inflate bond yields.

If this goes much further the FED will have to step in and take corrective measures which will necessarily expose that the economy is not nearly what the populace thinks it is. More Quantitative easing is likely, if they stop raising interest rates or go a bit backwards you will see some relief but then the fact that the economy can't sustain itself without being subsidized will be exposed.

We are at a point where "bad things" are likely to start happening.

Bonds yields going up is generally a good thing Rich. It's means a growing global economy and the increased yields are more attractive to investors looking for long term stability outside of the market. The bond market has been a zombie for years because it provided a next to zero return. But you already knew this....

Look, we just had the longest and most stable bull run in history. The market is up 8000 in the past year and this "correction" is only about a 1/4 of that once-in-a-lifetime run. 2000 pts is NOT a correction. There is over-valuation and it's OK for rates to go up where they should naturally be. This is a return normalcy and that is a good and healthy thing. Relax man.

"Look, we just had the longest and most stable bull run in history. The market is up 8000 in the past year and this "correction" is only about a 1/4 of that once-in-a-lifetime run. 2000 pts is NOT a correction. There is over-valuation and it's OK for rates to go up where they should naturally be. This is a return normalcy and that is a good and healthy thing. Relax man."


We had an 8 year Bull run due to artificially low almost "zero" interest rates since 2008, and 86 billion dollars of newly printed money pumped into the banks every month up until about 1 year ago. Half of that 86 billion each month was to purchase home mortgages in default and then to keep abandoned homes out of the inventory, off the market so the home prices could be artificially propped up. Now all of this can kicking is coming back to bite us in the ass and is going to blow up big time. Nothing got fixed since 08 and the problems just got compounded, bubbles got way bigger and so did the consequences, but some people got allot richer. Now it's time for "the great wealth transfer", as much wealth as possible was sucked into the markets, (as there was no other place to put your money and get a reasonable rate of return, or necessary rate of return as it relates to the pension systems), now it's time for that wealth to change hands.

Stocks go up and stocks go down, hasn't changed in over 200 years. The Dow went up 42 % since DT was elected and people whine about a 10% pull back UFB.

Let me put this in a perspective you might understand. You have a baby, you feed it, it swallows, you feed it more, it swallows more, you keep shoveling food in the baby's mouth and you're so excited that it ate so much and then it pukes. Not everything you fed it, but enough to make a mess. You wait a while and start feeding the baby again. That's the stock market. It puked after swallowing a lot of money. Let it rest, it will get hungry again.

Snake

I've never seen the markets described in such vibrant color. Fantastic!

Now Rich is going to argue about what happens once the baby digests his meal. I guarantee it.